The Bank of Japan has raised interest rates three times before, and each time Bitcoin has experienced a drop of over 20%.

BlockBeats News, December 19th. According to market data, since 2024, the Bank of Japan has implemented interest rate hikes three times, in March and July of 24 and in January of this year. Over the past few decades, a significant portion of global capital market liquidity has actually come from Japan, not just the United States. Due to Japan's long-standing zero or even negative interest rate policy (NIRP), coupled with an extremely loose monetary environment, Japan has effectively served as a low-cost funding ATM for the global financial system.

Therefore, Japan's interest rate hikes have had a significant tightening effect on global liquidity. Bitcoin has experienced price declines after each of the three mentioned interest rate hikes, with decreases of 23.06%, 26.61%, and 31.89%, respectively.

However, the latest round of interest rate hikes in Japan was well anticipated, and the market has already responded proactively. Whether this round of rate hikes will lead to a similar Bitcoin price drop as seen before remains uncertain.